Dubai Real Estate

Dubai real estate buyer’s guide: All costs, extra fees for new homeowners revealed

May 1, 2024

The Dubai real estate market is experiencing a steady rise in interest from both international and local investors, leading to an uptick in sales transactions across the city. What are the additional costs and fees associated with buying a home in Dubai’s bustling property market?

According to the official website of the Dubai Land Department (DLD), the following fees are applicable upon purchasing a property:


All property transactions in Dubai incur a DLD fee equivalent to four percent of the property’s purchase value.


✔️ Two percent of the sale value for both the seller and the purchaser.

✔️ AED 250 fee for a real estate unit or villa.

✔️ AED 100 fee for a land plot map for lands outside the Dubai Municipality’s authority.

✔️ AED 225 fee for a land plot map unified with the Dubai Municipality.

✔️ AED 10 knowledge fee for each drawing.

✔️ AED 10 innovation fee for each drawing.

SERVICE PARTNERS FEES (Depending on the sale value)

✔️If the value equals or exceeds AED 500,000, a fee of AED 4,000 + five percent VAT applies.

✔️If the value is less than AED 500,000, a fee of AED 2,000 + five percent VAT applies.


0.25% of the mortgage amount + AED 290.

Bank mortgage fee: One percent of the loan amount + five percent VAT.

Property valuation process cost: Approximately AED 3,500.


If involving an agent, the cost can increase by around two percent + five percent VAT, depending on the agency involved.


A fee of AED 520 is required to obtain a title deed.


Beyond the transactional fees, owning real estate in Dubai also entails additional expenses:

✔️ Maintenance charges: Depending on the property type, size, and other factors.

✔️ Annual service fee: Determined by various factors related to property maintenance.

In an interview with Arabian Business last year, Coldwell Banker’s Managing Director, Ayman Youssef explained, “Buyers should always factor in additional costs like maintenance fees and service charges, this can sometimes be a surprise to buyers and possibly affect their Net ROI.”


According to Youssef, here are the steps for first-time homeowners:

 ✅ Research: Begin by researching the available options, such as ready properties or off-plan projects. It is important to set a budget and thoroughly research the units, prices, administrative costs, and fees associated with the properties. Consider whether to buy the property in cash or through a mortgage.

 ✅ Hire a broker: As a first-time buyer, it is advisable to hire a reputable broker. A broker can provide guidance on property options, offer impartial advice, and assist throughout the purchasing process.

 ✅ Viewings and finalising: Attend property viewings, address any concerns or queries, and attend open house events. Once a property has been chosen, make an offer.

 ✅ Form B: When appointing a broker, apply the buyer’s agreement (Form B) on the Dubai REST App.

 ✅ Sign contract F and issue a deposit: Sign Form F, which is a memorandum of understanding between the buyer and seller, outlining the agreed price and broker’s commission. To secure the deal, place a monetary deposit, typically amounting to 10% of the purchase price.

 ✅ NOC: After signing the contract, the developer will prepare a No Objection Certificate (NOC), confirming that all fees have been settled and the developer has no objections to the sale.

 ✅ Transfer of ownership: Once the NOC is obtained, the process of transferring ownership begins. Payment is verified, and the Dubai Land Department (DLD) approves the ownership transfer. A transfer form is signed, officially changing ownership from the seller to the buyer.

 ✅ Handover: Complete any pending payments, connect utilities, and pay service charges. The title deed is transferred to the buyer, establishing their ownership of the property.

Navigating the intricacies of property transactions in Dubai involves understanding the various fees imposed by the Dubai Land Department (DLD) and other parties. These fees are essential considerations for both buyers and sellers in the real estate market.

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